SpaceX Valuation Hits $175 Billion Amidst Global AI and Chip Strategy Shift

SpaceX's private valuation has reportedly reached a staggering $175 billion, a figure that would make it the seventh-largest company in the United States if it were publicly traded. Despite this "gravity-defying" valuation, some market observers are raising concerns about the "enshittification" of private markets, where massive valuations are often decoupled from traditional revenue metrics. Elon Musk’s aerospace giant continues to dominate the private funding landscape, drawing capital away from traditional sectors.

In a related move to modernize older tech infrastructure, Apollo Global Management’s Rackspace is attempting a "second life" by repositioning itself as a managed service provider for AI workloads. By leasing data center capacity and helping enterprises run private AI clouds, Rackspace is finding new relevance in a market otherwise dominated by hyperscalers. This shift highlights a broader trend where both established giants like SpaceX and legacy firms like Rackspace are competing for a slice of the AI and private equity boom.

Meanwhile, international competition is heating up as Huawei unveils new chipmaking plans. The Chinese tech giant's move into advanced semiconductor manufacturing has investors buzzing about a potential shift in the global supply chain. As the US and China continue to compete for technological supremacy, the valuation of private aerospace and chip firms is becoming increasingly tied to geopolitical strategy and national security interests.